You are Chief Investment Officer at Aldgate Investments. You are concerned that the results of the forthcoming general election in the UK are very uncertain, and could lead to a period of extreme economic uncertainty for UK investors. An unexpected clear mandate for a strong government could lead to a resurgence in markets; whereas if no party can form a government there could be a prolonged period of instability for markets and interest rates.
Write a memo to your investment team advising them of steps you want them to take in managing your UK client discretionary portfolios to protect them as much as possible from any potential instability in equity and bond markets.
You are aware than some of your investment managers are relatively junior and have only experienced rising asset prices. Include in your report an explanation of your concerns and why you want them to take the steps you suggest.